(Kitco News) - On Tuesday, Osisko Mining (OSK: TSX) reported positive results of its independent feasibility study (FS) on its 100% owned Windfall gold project located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Québec.
The company said that the FS provides a robust base case assessment for developing Windfall as an underground dual ramp-access mine with a central processing mill on site, and reflects drill results available as of June 7, 2022, as included in the Windfall MRE (2022).
According to a press release, at US$1,600 gold price, the project's after-tax NPV is C$1,168.4 million, with after-tax IRR of 33.8% and after-tax payback after start of production of 2 years. Average after-tax free cash flow is C$257 million per full year of production (C$2.3 billion cumulative free cash flow).
The project's full year average production is 306,000 oz Au, at 8.1 g/t Au average grade (fully diluted), with peak production of 374,000 oz Au in year two. All-in sustaining cost is US$758/oz. Capex is US$607 million (includes US$38 million as contingency in direct and indirect costs).
Osisko said that the company has begun detailed engineering work on the project, and is progressing towards delivering the Environmental Impact Assessment study in Q1 2023 and initiating the mine permitting process.
CEO John Burzynski commented, "We are very pleased to deliver the Windfall feasibility study, outlining the supporting economics indicating Windfall can become a significant and highly profitable new gold mine in Québec.
"As we move to complete the EIA study in Q1 2023 and begin the permitting process, we expect to advance our underground exploration and continue to grow the scale and quality of the deposit. The corporation anticipates the announcement of project financing plans in H1 2023 and a production decision in early 2024."
Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Osisko holds a 100% interest in the high-grade Windfall gold deposit located between Val-d'Or and Chibougamau in Québec and holds a 100% undivided interest in a large area of claims in the surrounding the Urban Barry area and nearby Quévillon area (over 2,400 square kilometres).
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